George Osborne to Cut Pension Death Tax

George Osborne to Cut Pension Death Tax.

Chancellor George Osborne has announced that the 55% pension death tax will be cut and pensioners will be able to leave more of their money to loved ones. The plans will start from next April.

The 55% tax will be removed from untouched defined contribution pension pots left by over 75’s and also pensions which have already had money taken from them. Rules will allow inheritors to pay little or no tax on the pension pot depending on if the pension had been touched.

The idea was first discussed in July and expected to cost the treasury £150m per year, an estimated 320,000 people are thought to be affected by this cut and is likely to go down well with Conservative voters.

Mr Osborne said that the plans would allow “People who have worked and saved all their lives will be able to pass on their hard-earned pensions to their families tax free.”